Stock Tips for today, Aug 3, 2011: Sell Tata Steel and Buy RCA

The Indian stock market is poised to go up as the technical default by US was resolved after the bill regarding extension of debt ceiling passed the senate and the President signed it to a law.

Sharetipsinfo has suggested to sell the stock of Tata Steel below Rs 564 with a target price of Rs 556-550 and a stop loss at Rs 568. The recommendation is for intraday trading.

The website, technicalanalysisofstocks, recommends to buy the stock of Rashtriya Chemical & Fertilizer with a target price of Rs 86 and a stop loss at Rs 72.

Rajesh Jain EVP & Head - Retail Research, Religare Securities, has given the following recommendation for today's trading.

Dr Reddy's Laboratories: Jain's recommendation for this scrip is buy with for a target price of Rs 1720 and stop loss at Rs 1555. After hitting all time high around 1854 levels it has shown a correction and taken support around its 200 EMA on daily charts and underwent consolidation. It is now forming inverted head and shoulder pattern on daily charts and is on the verge of breakout from the same.

Nagarjuna Fertilisers & Chemicals: Here the recommendation is buy with a target price of Rs 36.50 and stop loss at Rs 31.50. The stock is trading in a rising channel on the daily chart. Currently, it is testing the lower band of the same. It has also taken support from its 200 DMA. Volumes were also very high in last trading session and the stock is looking positive.

LIC Housing Finance: There is a sell recommendation on LIC housing for a target price of Rs 190 and stop loss at Rs 214. The stock has hit 11-week low and has also closed below its 200DMA levels. If it remains below 213 levels and may witness the fall extending towards 190 levels in the near future. The stock shows a series of lower tops and bottoms in daily graph.

Sintex Industries: Regarding this stock, the recommendation is sell with a target price of Rs 152 and a stop loss at Rs 180. The stock has tested its down trendline resistance on weekly graphs last week and from there it has seen a consistent fall. It is trading very close to its 200DMA and if it moves below 169 levels, we may see extension of down leg towards 152 levels.

Tech Mahindra: Here too the recommendation is buy with a target price of Rs 850 and stop loss at Rs 760. The stock is trading below it 200 EMA on the weekly chart. Now it has formed an inverted head and shoulder pattern which is bullish in nature. It has given a breakout from its neckline of its inverted head and shoulder as well as its 200 EMA on weekly charts.

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